Controller of Budget raises red flag over high county wage bill

Controller of Budget Agnes Odhiambo has raised the red flag over a fast-rising county wage bill and called for strategies to curb the growth.

County workers were paid Sh25.1 billion in the three months to September last year, up from Sh22.6 billion in a similar period the previous year. Some counties were not included in the figure, meaning it is much higher.

There has been concern over a hiring trend by the devolved units since 2013 despite inheriting a substantial number of workers from the defunct local authorities.

Ms Odhiambo, in her counties budget review report for the first quarter, said the Sh25 billion was 56 per cent of the counties’ total expenditure for the three months compared to 51 per cent for a similar period in the 2014/15 fiscal year .

“Further, this expenditure would have been higher than reported had all counties including Homa Bay, Kericho, Laikipia, Murang’a and Nairobi City County paid their September salaries in the period under review,” Ms Odhiambo said.

“There is need to ensure that expenditure on personnel emoluments is contained at sustainable levels. County governments should liaise with the national government to devise strategies that will effectively address this challenge.”

An analysis in the report showed that in some counties, wages were taking up nearly 90 per cent of the total revenue leaving very little for development.

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Embu County recorded the highest proportion at 88.6 per cent followed by Tharaka Nithi at 88.4 per cent and Nyeri at 88.1 per cent.

In the same report, both Tharaka Nithi and Nyeri are reported to have spent zero on development projects. A high wage bill in addition to funds for running offices (buying stationery, fuelling cars, and hospitality among others) means that no funds are left for projects.

This is in contravention of the Public Finance Management (PFM) Act which requires that at least 30 per cent of the budget be reserved for development.

Counties have been recruiting staff saying that those who were inherited lack the skills needed.

Last year, a report by the Intergovernmental Steering Committee for Capacity Assessment and Rationalisation of the Public Service recommended that some workers be sent home.

But Council of Governors chairman Peter Munya opposed the move saying the best option would be to retrain and repost them.